Keeping On Top Of Your Credit Score


Got Credit?

#1 Rule: ALWAYS make your payments on time, even during your grace period! 

The goal with credit cards is to only use them in absolute emergencies, but when you do, please always keep them BELOW 30% of the line you have.  For example, if your credit card offers you a $1,000 line of credit, never charge and owe more the $300 at any time!

If for some reason you have to carry more debt, consider opening another card instead of using the one that would take you over 30%.  Believe it or not, it is better for your credit score to have 2 credit cards with line use below 30% than 1 credit card with line use of 60%.

Pre Approvals: Yea or Nay?

Watch out for those pre approvals––they count on your credit regardless if it\’s from car shopping or looking into refinancing. Always get advice from a Certified Financial Planner before applying for a pre approval! 

Credit & Insurance Rates

Credit matters with insurance rates!

Wait?! What??

Yes, it is true your credit rating has an impact on what you pay for your car and home insurance.  If your score recently went up be sure to re-shop for these coverages to lower your costs.  

Paying Off Credit Cards

Lastly, never close a credit card when it is paid off. Cut it up, but leave it open on your credit.  Closing cards will lower your score. 

Always follow your score every few months to ensure nothing is incorrect.  (I typically recommend Credit Karma.)

When you need financial advice, from managing debt to planning for retirement, turn to the friendly, professional, and experienced Certified Financial Planners at Haven Financial Planning. Contact us today to get started!